When I move a file into an inner folder of a shared folder, does anyone lose access?

Question

Let's say I have a shared folder called "Big Folder" and there is a file called "Hello" in "Big Folder".

I create a new folder, called "Small Folder" inside "Big Folder".

When I move "Hello" into "Small Folder", Google Drive tells me:

Moving this item will share it with everyone who can see the shared folder "Small Folder". You are moving an item out of a shared folder "Big Folder", so people will lose access.

1. Will anyone actually lose access?
2. Is there any way to have a folder inside another folder where people do have access to the outer folder, but not the inner folder?

EDIT: Question 2 can be answered here. I am still curious about question 1.

Answer 1

By default sharing a folder in Google Drive (in your case "Big Folder") - any file or folder inside it (in your case "Small Folder") is shared with the same people.

Therefore, if you have not changed settings, everything you move from "Big Folder" to "Small Folder" will be shared the same. And no one will lose access.

But if you have changed the sharing settings of "Small Folder" which is in "Big Folder", you will need to check with who it is shared, and re-configure accordingly.

Answer 2

As far as I am concerned, nobody ever lost access to my shared files when I move them so I guess the answer is no.

Answer 3

1. it may happen. depends on if the access is inherited from an upper folder or its made custom
2. imagine it as a hidden folder in windows. the folder is there but can't be accessed unless you unhide hidden folders eg. folder can be there but not all people can access it (are aware of it) because it has different sharing policies